Detailed Explanation:

Answer: Option 1 — 1 only

Statement 1 is correct because BHIM app enables UPI-based direct bank-to-bank transfers using the recipient's UPI ID or QR code. Statement 2 is incorrect because BHIM requires three factors of authentication (device ID/mobile number, linked bank account, and UPI PIN), whereas a chip-pin debit card typically requires only two factors (card and PIN).

✅ Statement 1 – Correct: BHIM app allows money transfer to anyone with a UPI-enabled bank account using their UPI ID or by scanning QR codes.

❌ Statement 2 – Incorrect: BHIM app has three factors of authentication (device ID/mobile, bank account, UPI PIN), not two, while chip-pin debit cards have two factors (card possession and PIN).

📝 Short Notes: Digital Payment Systems in India

• BHIM (Bharat Interface for Money): A UPI-based mobile payment app launched by NPCI in December 2016 for instant bank-to-bank transactions.
• Three Authentication Factors in BHIM: (1) Device ID and registered mobile number, (2) Linked bank account, (3) UPI PIN for transaction completion.
• UPI (Unified Payments Interface): Real-time payment system enabling inter-bank transactions through mobile platform using unique Virtual Payment Address (VPA).
• Transaction Methods: UPI ID-based transfer, QR code scanning, mobile number-based transfer, and payment requests.
• Chip-Pin Debit Card Authentication: Two factors - physical card possession (something you have) and PIN (something you know).
• Security Advantage: BHIM's three-factor authentication provides higher security compared to traditional two-factor card-based systems.